COLORADO SPRINGS — Consumers are facing some difficult decisions right now when it comes to buying cars. Car prices are at an all-time high making the wrong decision even more costly. News5 has expert advice and some things to consider if you're looking at buying or selling a car right now.
Used car prices may finally be peaking. Experts say if you can afford to be patient more affordable days could be on the horizon when comes to buying a car, but for now it's definitely a sellers market.
According to Kelley Blue Book, this summer, the average transaction price for a brand new car was over $42,000. Used car prices also reached a record high average of over $25,000, paired with an average of 68,000 miles on the vehicle.
"The automakers are having trouble keeping up with demand. The current level of demand. In Colorado it was up 20.6% for the first six months of this year compared to last year," said President & CEO of the Colorado Automobile Dealers Association Tim Jackson.
A lingering semiconductor chip shortage for new cars, combined with many people who have saved up money and are looking to buy has created a shortage of both new cars and used cars allowing high prices to carry on. But prices may be leveling out.
The U.S. Bureau of Labor Statistics released their July 2021 Consumer Price Index findings and new and used vehicle price increases both saw a significant slowdown. From June to July, prices for new and used cars rose 1.7% and 0.2%, respectively.
"Whether that's a dealer or an individual selling a car it's going to be a seller's market in automotive for the foreseeable future. That will taper off when the supply starts building, but we're at least three to six months away from when we'll start to see inventories starting to fill back up," said Jackson.
According to an iseecars.com study, if you own one of these vehicles they are selling the fastest in the Colorado Springs and Pueblo markets:
VEHICLE / DAYS TO SELL
Subaru Legacy / 22.6
Jeep Compass / 23.5
Volkswagen Jetta / 26.6
Toyota Corolla / 27
Mazda CX-5 / 28
The experts say for sellers it could mean more money and if you're a buyer looking at one of these cars you'll want to act fast.
"So if you have a vehicle that's on our list with a short days to sell on the market which is what we've got in that study. It only adds to your negotiation power if you go to a dealer and say look I'm willing to sell you my Toyota Carolla I happen know it's one of the fastest moving cars not just generally speaking, but specifically in this local market here in Colorado Springs," said Executive Analyst at iSeeCars.com Karl Brauer.
While the data suggests car prices may be slowing, experts tell News5 the impact of the chip shortage for new cars could potentially drag on for another two years, creating more supply issues. It's why they suggest everyone should be tracking these developments even if you're not looking to buy or sell right now.